CQ TODAY PRINT EDITION
– ENERGY
June 23, 2009 – 7:31 p.m.
Waxman, Peterson Reach Agreement on Energy Bill, Setting Up Floor Vote
By Avery Palmer, CQ Staff
The chairmen of two pivotal House committees have reached a deal that could give energy legislation enough votes to pass this week.
Agriculture Chairman Collin C. Peterson , D-Minn., and Energy and Commerce Chairman Henry A. Waxman , D-Calif., said Tuesday evening that they have resolved disputes over how the bill (
These issues were the biggest remaining obstacle to the bill’s support in the Democratic Caucus. In general, the deal favors the farm industry over the wishes of environmental groups.
“We have something that I think works for agriculture,” Peterson said. “Things that are not nailed down, we are kind of on the same page going forward.” In light of this agreement, Waxman said, “we’re going to pass this bill and move on.”
Their agreement would put the Department of Agriculture, rather than the EPA, in charge of special projects to reduce emissions in rural areas — for example, by planting trees on farmland.
“We will seek guidance from the administration to figure out the appropriate role for the EPA,” Waxman said.
They will also add language to halt an EPA proposal, disliked by farm groups, to measure the greenhouse gas emissions that might indirectly result if more farmland is used for growing biofuel stock. They said the proposal would be on hold for five years pending a scientific study and consultation with federal agencies and Congress.
Both changes are likely to anger environmental groups, which say EPA has superior expertise in these areas. But, Waxman said, “I think we will hold the environmentalists.”
Peterson said he would vote for the bill, though other members are waiting to see final language. House leadership wants to bring the bill to the floor on June 26.
Majority Leader Steny H. Hoyer , D-Md., said a Saturday vote was also possible. “I will advise members they may be here this weekend,” he said.
Jim Matheson of Utah, one of four Democrats who voted against the bill in the Energy and Commerce Committee, said earlier Tuesday that many of his colleagues were still reviewing the bill. “If people aren’t on the committee, a lot of Democrats are wondering what’s really in the bill,” he said.
Trade associations also are scrutinizing the measure. “We’re trying to understand what the changes are and what they mean,” said Jim Owen, a spokesman for the Edison Electric Institute, which represents electric utilities. “People are walking around saying some bad words about this. There are a lot of moving parts, and the little-bitty details matter a lot.”
Waxman unveiled a revised bill June 22 that resolved another issue Peterson had raised on behalf of rural electric cooperatives and other small Midwestern utilities. The bill would now give these utilities a portion of the pollution allowances that businesses would use to meet the bill’s cap on greenhouse gas emissions.
In a letter to Waxman on Tuesday, Glenn English, CEO of the National Rural Electric Cooperative Association, said that “we still have concerns about this bill” but that his group “will not stand in the way of passage of this legislation.”
More Tweaks
The bill includes other changes that could help win votes among wavering Democrats. For example, it tries to address concerns about the treatment of small petroleum refining companies. The bill would now provide 0.25 percent of the allowances to small-business refiners, in addition to the 2 percent it already provides for the refining industry.
It would allow states to use up to 10 percent of the allowances they receive to fund clean-transportation initiatives, such as transit and bike facilities. More transportation funding was a priority for Earl Blumenauer , D-Ore., Transportation and Infrastructure Chairman James L. Oberstar , D-Minn., Doris Matsui , D-Calif., and others.
In an apparent concession to the aviation industry, the bill omits a requirement to set new greenhouse gas emission standards for aircraft, but does include new standards for motor vehicles and off-road equipment.
In a change requested by the Ways and Means Committee, the bill would use the states, not the tax code, to distribute monthly “energy refunds” to low-income consumers. Under the new provision, all families and individuals with income less than 150 percent of the federal poverty level would be eligible for benefits, along with anyone who receives food stamps or Supplemental Security Income or any single person or married couple who gets income-based Medicare prescription assistance.
Ways and Means Democrats are also discussing how to structure a tariff that could penalize developing countries that fail to take carbon reduction action. Some committee Democrats want to strengthen language in the climate bill that authorizes a “border adjustment,” or tariff, against countries not taking similar carbon reduction steps if the president makes a finding that the program’s allowances do not do enough to keep U.S. companies on an even footing with competitors in China and India.
Separately, Waxman said he expects the House will take up an amendment to give the Federal Energy Regulatory Commission backstop authority to site electricity transmission lines in Western states.
Richard Rubin, Edward Epstein, Coral Davenport and Joseph Schatz contributed to this story.




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